Nazara Technologies, two of whose step down subsidiaries - Kiddopia Inc and Mediawrkz Inc - held around Rs 64 crore at US-based Silicon Valley Bank (SVB), has successfully shifted about Rs 60 crore to another US bank, the gaming and sports media firm said in a stock exchange filing on Wednesday.
“A sum of $7.25 million (~Rs 60 crore) has been transferred to bank accounts outside of SVB and the balance amount of $0.5 million (~Rs 4 crore) remains in SVB accounts for unrestricted operational use,” the document stated.
Revealing the rationale behind retaining Rs 4 crore at the bank, Chief Operating Officer Sudhir Kamath said - “In the US there’s a blanket thing that up to $250,000 per account is in any case insured by the FDIC. So, up to that point holding money is never a risk.”
The company is yet to take a final call on whether it will continue to bank with SVB. “We’ll see how it (the situation) unfolds over the next few days,” Kamath said.
The $7.25 million parked at SVB formed less than 10 per cent of the company’s cash and balances on books, he further informed.
Learning from the SVB crisis, the company has carried out a detailed review of its subsidiaries’ bank accounts and taken relevant measures to avoid higher exposure or excessive concentration in select cases.
Published 15 March 2023, 16:39 IST